Crypto Industry Presses Congress for Tax Clarity on Mining Rewards

A coalition of crypto industry advocacy groups has urged U.S. lawmakers to advance the Tax Clarity for Mining and Staking Act, a narrowly tailored tax bill for mining and staking rewards.

The Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber submitted a joint letter to House Ways and Means Committee leaders on Sunday, arguing that the proposal would resolve long-running uncertainty in how such rewards are taxed and reduce liquidity pressure on participants.

The bill, which remains in committee, allows miners and stakers to choose whether to recognize tax on rewards when received or when sold, aiming to avoid taxing 'phantom income.'

A proposed amendment by Rep. Steven Horsford would limit deferral of reward taxation to five years, which industry representatives say would undermine the bill.